Documentation of the Paycheck Protection Program which includes the names of 660,000 small businesses and nonprofits that received $150,000 in funding was released this week.
Though the reporting covers less than 15 percent of the total number of loans, it represents the most detailed disclosure of information to date regarding one of the largest economic stimulus packages ever launched by the federal government. The PPP loans are part of the $2 trillion Cares Act.
Credit Unions Second Largest Providers of PPP Loans
Credit Unions across the nation disbursed $9.6 billion in loans to businesses through the Paycheck Protection Program, and a report which provided the first comprehensive revelation of how the funds were distributed was released on Monday.
The funds covered some 4.9 million in government loans granted under the PPP.
Congress granted these PPP funds as forgivable loans to businesses as an answer to damage caused to the economy by the COVID-19 pandemic. The pandemic has caused mass layoffs and led to economic turmoil across all sectors of the nation’s business landscape.
In total so far, more than $521 billion has been distributed through 5,461 lenders, and the average loan amount was approximately $107,000.
According to the report, 934 credit unions issued a total of 196,010 loans which are aimed aat supporting almost 1.2 million jobs.
Credit unions were the second largest grantors of these loans.
Today’s release of loan data strikes the appropriate balance of providing the American people with transparency, while protecting sensitive payroll and personal income information of small businesses, sole proprietors and independent contractors,” said Treasury Secretary Steven Mnuchin.
Banks loaned $496.7 billion as part of the PPP initiative, and the nation’s top five banks accounted for 17% of all the funds loaned.
As part of the data released this week, the government broke out details as to how the money was disbursed. Those details included how much money was lent per state, total loan amounts across those states, which banks and credit unions served as the top distributors of funds and broke down the total distribution according to industry.
The reporting also revealed the total holdings of participating lenders which included community development institutions, minority-led institutions, Farm Credit System firms, fintechs, other non-bank and any additional sorts of lenders.
The data included details regarding participation in underserved communities, rural areas, under-funded business zones and loans to religious-based organizations, grant providers, civil units and professional organizations.
According to a release from the U.S. Small Business Administration, these PPP funds will support 51 million jobs and ultimately reach more than 80% of all employees of small businesses.